Crime insurance form; now made obsolete by commercial crime coverage. This form covers against loss of money or securities due to various perils.
Insurance Encyclopedia
Money laundering
The process of making dirty money (money obtained illegally) legitimate through a process of placing, layering and integrating that money into the financial system.
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The act of changing the appearance of money that comes from illegitimate sources so that it appears to be legitimate money.
Money purchase benefit formula (Pensions)
A pension plan with fixed contributions for both employee and employer. Contributions are fixed based on the employee’s salary, either as a flat amount or as a percentage of the salary.
Money purchase plan (Pensions)
A retirement or pension plan wherein a particular amount of money is used to purchase an annuity for each participating employee. This is done periodically throughout the employment, and the total of the annuities is paid out to the employee at retirement.
Money purchase scheme
A defined contribution the scheme where member’s contributions (and those of the employer) are invested to build up a pension fund from which a retirement annuity and other benefits can be taken subject to IR limits. The contributions are usually a percentage of the member’s earnings.
Money/Money insurance
An insurer’s definition of money includes cash, bank notes, cheques, postal orders, postage stamps, national savings certificates and holidays with pay stamps, luncheon vouchers and VAT purchase invoices. Cover is ‘all risks’ subject to specific limits depending on the circumstances of the loss, e.g. from a locked safe or a directors home. Insurers normally cover personal assault and theft by employees, primarily a fidelity guarantee risk, is covered only if discovered within 14 days.
Monitoring or coverage counsel
The legal counsel retained by the insurance company to represent the insurer’s interest in connection with a claim. Coverage or monitoring counsel are in addition to defense counsel selected by the insureds with the consent of the insurer. Among other things, coverage and monitoring counsel will assist the insurer in evaluating any coverage issues, monitoring developments in the claim, analyzing liability and damage exposures of the insureds, providing input to defense counsel where appropriate, and negotiating any settlement in the claim.
Monoline insurer
Separately capitalised insurer that focuses wholly on one type of business, e.g. bond credit insurance. They are product speciality insurers often working on a wholesale basis.
Monoline Policy
An insurance policy covering one subject of insurance, as opposed to a combination of multiline policy.
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Any single line policy coverage.
Monopolistic state fund
Some states have their own system for providing reparations to injured employees eligible under the state’s workers compensation act. Private insurance companies may not compete. The states are North Dakota, Ohio, Washington, and Wyoming.